Revenues
Revenues: Reflect actual money received as a function of the business.
Income statements do not show when a business borrows funds or a business owner invests in a company because these funds are not revenue or income created from business operations.
Revenues detailed in the income statement reflect actual money received as a function of the business. If a business uses cash basis accounting, the income statement would recognize revenues at the time the business physically receives cash. If a business uses accrual accounting, the income statement recognizes revenue when earned, not necessarily when receiving cash.
